Class Action Settlement Sets Up Massive Cosmetics Giveaway

By consumeristcareyAugust 18, 2008

Do you like free makeup? How about free cologne? Macy’s, Bloomingdale’s, Filene’s, Lord & Taylor, Neiman Marcus, Nordstrom, and Saks Fifth Avenue have all settled a class action by agreeing to give away $175 million worth of cosmetics starting early next year. No proof of purchase is necessary, but the freebies will be handed out on a first-come-first-served circus basis. Details inside…

The lawsuit alleged that department stores and cosmetics companies conspired to sell products at the manufacturers’ suggested price only – never at a discount. It also alleged that special promotions were coordinated in a way that ensured there would be no competition among stores.

In addition to the $175 million giveaway, the department stores and cosmetics companies agreed to pay up to $24 million in attorney fees, and enter a court order that prohibits them from engaging in price-fixing schemes and certain marketing practices.

The settlement was originally reached in 2004, as reflected by the dated registration site, but the giveaway will start in January 2009. Consumers will be required to sign a form declaring that they purchased the covered products between May 29, 1994 and July 16, 2003 in order to receive free merchandise worth up to $25.